MGT411 Final Term Current Quiz 3

MGT411 - Money & Banking · Quiz # 03 · Mega File · Solved by Muhammad Afaaq · Start Date Jun 16, 2011 12:00 AM · End Date Jun 20, 2011 11:59 PM · Marks 15 · Asslam O Alikum · MGT411 - Money & Banking · Quiz # 03 · Mega File · Solved by Muhammad Afaaq · Start Date Jun 16, 2011 12:00 AM · End Date Jun 20, 2011 11:59 PM · Marks 15 · Remember Me in Your Prayers · Best regard’s · Muhammad Afaaq · MBA 4th (Final Semester) Finance Group · Islamabad · If u like me than raise your hand with me · If not then raise ur standard · That’s about me … !

Q1. of 15 ( Start time: 05:29:55 PM ) Total Marks: 1

You are a bank customer and bank allowed you maximum loan facility up to Rs. 300,000. It would be called -------

Loan recovery Loan extension Line of credit

Q2. of 15 ( Start time: 05:31:13 PM ) Total Marks: 1

Which of the following is a role of a financial institution acting as a financial intermediary?

Pooling the resources of small savers Formulating oversight regulations Sending out free calendars at the holidays Lobbying legislators

Q3. of 15 ( Start time: 05:31:55 PM ) Total Marks: 1

Which one of the following is true for the relationship between the yield of taxable and tax exempt bond?

Higher the tax rate wider the gap between the yield of taxable and tax exempt bond Taxable bond yield is always greater than tax exempt bond Higher the tax rate shorter the gap between yield of taxable and tax exempt bond Lower the tax rate wider the gap between yield of taxable and tax exempt bond

Q4. of 15 ( Start time: 05:32:39 PM ) Total Marks: 1

Which of the following is NOT included in the assets of commercial banks?

Cash Items Reserves Securities Bills payable

Q5. of 15 ( Start time: 05:33:35 PM ) Total Marks: 1

A graph of the term structure with YTM on Y-axis and time to maturity on X-axis is called:

Demand curve Supply curve

Leffer curve

Q6. of 15 ( Start time: 05:34:02 PM ) Total Marks: 1

The interest rate that is involved in _____________ calculation is referred to as discount rate

Present value Future value Intrinsic value